Sydney development sites and defensive assets lead NSW investor activity.
The New South Wales investment sales market recorded a solid first half of 2026, supported by improving buyer confidence, stabilising pricing expectations and renewed capital deployment across both development and income-producing assets, according to Cushman & Wakefield.
The consultancy said transaction activity was underpinned by shifting policy settings, evolving capital allocation strategies and stronger demand for assets offering either development potential or defensive income characteristics.
Matt Pontey, National Director & Co-Head of Investment Sales NSW at Cushman & Wakefield, said the Federal Government’s changes to negative gearing have contributed to a reassessment of residential versus commercial investment strategies, with capital increasingly redirected toward commercial property and development opportunities.
He added that the repricing cycle has largely stabilised, improving buyer confidence and supporting deployment across Sydney’s metropolitan markets, while NSW planning reforms are significantly reshaping how development sites are valued.
“Development potential is now driving value rather than existing use,” Pontey said, highlighting strong demand for tightly held sites across the Eastern Suburbs and inner metropolitan corridor.
Miron Solomons, National Director & Co-Head of Investment Sales NSW at Cushman & Wakefield, said scarcity remains the defining feature of the Eastern Suburbs market, supported by wealth, lifestyle demand and limited supply of quality sites. He noted growing activity in strata amalgamation transactions in precincts such as Double Bay, Bondi Junction, Paddington and Randwick, where redevelopment opportunities require coordination between multiple owners.
In the development site segment, Jake Smith, Manager, Investment Sales NSW at Cushman & Wakefield, said buyers are becoming more selective and disciplined, with greater focus on planning certainty, feasibility and delivery risk. He added that successful campaigns are increasingly defined by strong preparation, clear planning pathways and credible development narratives rather than passive marketing.
Meanwhile, in the multi-tenanted and apartment block sector, Henry Robertson, Executive, Investment Sales NSW at Cushman & Wakefield, said investors are increasingly targeting reliable income-producing assets, particularly residential blocks of units, due to diversified income streams and strong underlying residential fundamentals.
He added that demand for defensive assets has strengthened as capital shifts away from higher-risk sectors, with well-located, well-connected commercial precincts continuing to deliver rental resilience and capital growth.
Ariel Balkin, Sales Analyst, Investment Sales NSW at Cushman & Wakefield, said investor appetite is broadening across asset classes, with growing interest in mixed-use and shop-top properties that provide income diversity and long-term value creation potential.
She said investors are taking a more strategic approach to capital allocation, balancing immediate income, rental growth potential and underlying land value, while residential demand remains strong alongside increasing diversification into commercial real estate.